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Home Business News Burberry has glimmers of hope, but warned ‘time is running out’

Burberry has glimmers of hope, but warned ‘time is running out’

14th May 25 1:21 pm

Burberry, the British luxury fashion house, has released its full year results with like-for-like sales in store fell by 12% in the year and by 6% in Q4.

Adjusted operating profit of £26 million, down 94% and trading conditions remain very difficult but Burberry is doubling down on cost saving initiatives.

The luxury fashion retatiler has been told there is “glimmers of hope” but Burberry has been warned that “time is running out.”

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “FY25 was an annus horribilis for Burberry.

Almost everything that could go wrong did. Luxury consumers across the globe significantly tightened their belts hitting the whole luxury sector. But Burberry has seen more impact than most. Its operational execution has left a lot to be desired in recent years and the brand has lost its lustre, compounding the wider sector’s issues.

Burberry’s turnaround plan seeks to tackle these issues, and there are some tentative signs of encouragement. The 6% like-for-like sales decline in the fourth quarter was a marked improvement and suggests the strategic plan to reignite the brand may be gaining early traction.

The news on further cost savings is also highly welcome. Burberry is doubling down on productivity initiatives, having found an additional £60 million of incremental savings over the next couple of years. This should support margins, even if sales remain weak and will be vital in keeping investors on side.

That said, time is running out for Burberry. Investors have seen several failed turnaround plans from Burberry in recent years. This one feels like a last chance saloon.”

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